Initially, I thought it was laughable, as it's obviously designed from a very economic perspective and looks and sounds odd. However, price it below £100 (ideally), release it in a variety of colours, and baby, I think it could be a sales explosion with some appropriate marketing.
£100 is approximately the price at which an electronic device becomes a toy and more of a disposable investment. The console also *appears* more durable, shareable and approachable. Loss of 3D assists in this. I see your game Nintendo. You want the kids and the women, don't you? You cheeky sods.
Personally, I'm quite happy if it sells well, as Nintendo's handhelds do benefit a lot from a large quantity of 3rd party support and I would expect that to increase. It barely impacts me otherwise.